Nuevo Energy redeeming some of its 9½% '08 notes

New York, May 27 - Nuevo Energy Co. (B2/BB-) announced the partial redemption of its 9½% senior subordinated notes due 2008.

The Houston-based oil and natural gas exploration and production company said it would redeem $157.2 million of the $257.2 million of the notes which are currently outstanding (out of the $260 million issued in August 1999). The notes will be redeemed on June 23 at a price of 104.75% of the principal amount.

The company said the partial redemption will be funded by a combination of cash on hand and bank debt.

Owens-Brockway completes tender for Owens-Illinois 7.85% notes

New York, May 27 - Owens-Brockway Glass Container Inc. (B1/BB) said that it has accepted for purchase $274.543 million aggregate principal amount of the 7.85% senior notes due 2004 issued by its indirect parent, Owens-Illinois, Inc., under its previously announced tender offer for the notes and related solicitation of noteholder consents to proposed indenture changes.

That tender offer expired as scheduled at 11:59 p.m. ET on May 23 without extension. The securities tendered represent more than 91% of the $300 million aggregate principal amount of the 7.85% notes which were outstanding prior to the tender offer.

The company said that the indenture amendments for which it was seeking noteholder approval have now become operative.

As previously announced, Owens-Brockway, a Toledo, Ohio-based maker of glass containers, said on April 29 that it had begun its cash tender offer for the 7.85% notes and the related consent solicitation, seeking consents to amend the note indenture to eliminate some covenants and events of default.

It said that holders tendering their notes would receive $1,045 in cash per $1,000 of notes accepted for payment, plus accrued interest up to but excluding the date the notes are accepted.

Owens-Brockway set May 23 as the expiration deadline, subject to possible extension.

Separately, Owens-Brockway sold $450 million new 7¾% senior secured notes due 2011 and $450 million new 8¼% senior notes due 2013 on April 29, with a portion of the note offer proceeds to be used to pay for any of the 7.85% notes tendered and/or otherwise repurchase all of the outstanding notes. A portion of the deal proceeds is also to be used to permanently reduce the revolving loan portion of the secured credit agreement, which matures on March 31, 2004. The note sale closed on May 6.

Deutsche Bank Securities Inc. (call 800 553-2826) was the dealer manager and solicitation agent for the offer, and MacKenzie Partners, Inc. (call 800 322-2885) was the information agent.

Alderwoods Group to redeem $30 million 11% '07 notes

New York, May 27 - Alderwoods Group, Inc. said that it would make an optional redemption of $30 million of its 11% senior secured notes due 2007, using funds drawn from its credit facility to redeem the bonds, thus converting the 11% fixed-rate debt into Libor-based floating-rate debt at a much lower interest rate.

The company expects to complete the transaction in 30 days.

Alderwoods, the Cincinnati-based Number 2 U.S. deathcare company, formerly operated in the U.S., Canada and England as The Lowen Group, but sought bankruptcy court protection from its junk bond holders and other creditors in June 1999. It emerged from bankruptcy in January 2002, changing its corporate name and relocating its headquarters to Cincinnati from Vancouver.

The company made a $10 million mandatory principal repayment plus accrued interest on these senior secured five-year notes on Jan. 2, 2003. In addition, the company paid in full the $52.6 million of the senior bank debt of its wholly owned subsidiary, the Rose Hills Co. These payments, along with some miscellaneous debt repayments, have reduced Alderwoods' total long-term debt in fiscal 2003 by $64.8 million and have reduced its total long-term debt since emergence by $147.3 million.

Stericycle bought back $6.6 million of 12 3/8% '09 notes

New York, May 27 - Stericycle, Inc. (B3) said that it has repurchased a total of $6.6 million in principal amount of its 12 3/8% senior subordinated notes due 2009.

The Lake Forest, Ill.,-based regulated medical waste management company - which issued $125 million of the notes in November, 1999 - said the repurchases were made at prevailing market prices in privately negotiated transactions with two noteholders. The company paid a premium of approximately $1.1 million in addition to the principal amount of the notes.

It said the premium and the related non-cash write off of deferred financing charges of $200,000 will be recorded as one-time interest expense during the quarter ending June 30. The result of the premium and the related non-cash write off of deferred financing charges in connection with the repurchase of the bonds will have a two cents per share impact on earnings for the quarter.

Stericycle noted that its remaining outstanding 12 3/8% notes may not be called for redemption before Nov. 15, 2004. When the notes can be called, a premium of 6.125% is payable in connection with redemptions during the first year.

Universal Compression says $169.15 million 9 7/8% notes tendered by early deadline, calls remainder

New York, May 27 - Universal Compression, Inc. said $169.15 million out of its $229.75 million outstanding 9 7/8% notes due 2008 were tendered by the early tender deadline of 5.00 p.m. ET on May 20.

The subsidiary of Houston-based Universal Compression Holdings, Inc. said it accepted for purchase all validly tendered notes.

Holders who did not tender may still do so up to the expiration of the tender offer at midnight ET on June 11.

Universal Compression said Tuesday it will redeem any notes still outstanding on June 26 at a price of 104.938% of the principal amount plus accrued interest up to but not including the redemption date.

As previously announced, the natural gas compression services company will pay 105.35% of principal amount to holders who tender by the early tender date. After that and up to the expiration date on June 11 it will pay 104.938% of principal. In both cases holders will receive accrued interest up to but not including the payment date.

Lehman Brothers (212 528-7581 or 800 438-3242, attention Emily Shanks) is dealer manager and Mellon Investor Services (866 323-8159 or 917 320-6286) is information agent for the tender offer.

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